Page 149 - Cambridge IGCSE Business Studies

10: Marketing, competition and the customer

CASE STUDY Avitourism in South Africa

Birding is one of the fastest growing nature-based
tourism activities worldwide and is experiencing
similar growth in interest and popularity in
South Africa.
An estimated 3 million international trips are

taken each year, specifically for the purpose of bird-

watching. The size of the international avitourism
market for South Africa is between 8,000 and
16,000 avitourists per annum.
Avitourists have higher than average income
levels.
Source: Adapted from DTI for Republic of South Africa
report Avitourism in South Africa, 2010 Avitourists in South Africa

TASK
Why might the avitourism market be described as a niche market?

Benefits of mass marketing Limitations of mass marketing
Mass marketing requires large scale Much more competition in the market 147
production. Larger firms oft en benefit which lowers prices and profit margins.
from economies of scale which reduces
unit costs.

A much larger market has the potential Not all markets are large enough to
for high sales and profits. support a mass marketing approach.
Changes in consumer spending patterns Consumers today are oft en looking
might have less effect on firms selling to for something slightly diff erent from

a mass market. This reduces the risk to that offered by same product mass
firms who operate in mass markets. marketing. This has led to greater
division of the whole market and
reduced the scope for mass marketing.
Table 10.2 Benefits and limitations of mass marketing

CASE STUDY Weetabix

Bright Food, one of China’s largest food groups, has bought a 60% controlling share in the ownership of UK breakfast
cereal brand, Weetabix.
Chairman Zongnan Wang has been quoted as saying: ‘With Bright Food’s strong resources and our expertise in
both the Chinese and broader international markets, we are excellently placed to develop the Weetabix business.’
Source: Adapted from www.bbc.co.uk/news/business-17935661

TASK
Why might the market for Weetabix be described as a mass market?